The S&P 500 Railroad index in the lower right chart on 5/17, was up against rising channel resistance, while the DJ Trucking index was breaking below a bearish rising wedge (See Transportation derailment post here).
Both of these industries are very important to the economy and the “Power of the Pattern” was suggesting trouble was around the corner for Trucking and Railroads.
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Below is an update to the Railroad index, which is breaking rising channel support today, breaking below last weeks lows…
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No pun intended, Tranpsorts can be a “Driving force” and a great indicator for the direction of the economy and stock market!
The day and week is far from over, yet this breakdown of rising channel support at (1) in the above chart is not the best of signs for the broad market!
